Devrosaid full-year profit would be hurt by a combination of a weakening Czech crown against the pound, increases in raw material costs and delays in plant commissioning. The trend of increasing raw-material prices will continue into 2013, Devro said.

Analysts said “cost headwinds” had taken the shine off strong demand. Nicola Mallard, analyst at Investec, said: “We have seen headwinds from currency, as well as prolonged commissioning periods on new capacity and inflation in hide costs.”

However, she added 2012 was always going to be a “transition year as new capacity was installed”, anticipating a return to “solid growth” next year.

Darren Shirley, an analyst at Shore Capital, said Devro’s trading update was “mixed,” as sales volumes have risen in many markets since the start of the second half. He said: “We continue to believe the medium- to long-term dynamics remain intact, with structural growth potential underpinned by very strong margins.”

Elsewhere, Numis said modest market downgrades could present a buying opportunity at lower levels, although the shares had enjoyed a strong recent run.

Steve Hannam, chairman and a director of the company, on Monday purchased 12,594 shares at 317.6p each, after the share price dropped, a spokesman said, which reflected that the stock was a good “buying opportunity”.

Devro, which has manufacturing sites in Scotland, the Czech Republic, the United States and Australia, said it would invest about £35m ($56.0m) this year to increase capacity and productivity in 2013 and 2014.